Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

External Knowledge in Organisational Innovation

Paul Kruse (paul.kruse@tu-dresden.de)

Toward an Integration Concept

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

Agenda

Utrecht, 06.06.13 External Knowledge in Organisational Innovation | ECIS 2013Paul Kruse

Slide 2

- Motivation

- Background

- Methodology

- Results

- Discussion

- Summary and Outlook

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

Motivation

Utrecht, 06.06.13 External Knowledge in Organisational Innovation | ECIS 2013Paul Kruse

Slide 3

Motivation- companies are increasingly tapping external knowledge for innovation

purposes

- Open Innovation as a paradigm shift toward an active integration of external knowledge (Chesbrough, 2003)

Prior research has…- identified various types of external knowledge (Kruse, 2012, Kang &

Kang 2009) and their specific influence on innovation (Kruse & Geißler, 2012),

- highlighted difficulties with integrating such knowledge (Fichter, 2009), and

- emphasised increasing opportunities for integrating external knowledge following the emergence of Web 2.0 (Belkahla & Triki, 2011)

Challenges remain…- the multitude of integration approaches (Gassman & Enkel, 2006) and

- the allocation of those approaches within the stages of the process of innovation

- My focus: customer knowledge

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

BackgroundIn

novati

on • “Implementation

of novel technical, commercial, organizational, or social solutions in a business environment.”

(Pleschak & Sabisch, 1996)

Op

en

In

novati

on • Companies “use

external ideas as well as internal ideas, and internal and external paths to market, [in order] to advance their technology”.

(Chesbrough, 2003)

Inn

ovati

on

m

an

ag

em

en

t• “Leadership and Management [...] of the whole process of innovation”

(Disselkamp, 2005)

Utrecht, 06.06.13 External Knowledge in Organisational Innovation | ECIS 2013Paul Kruse

Slide 4

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

Innovation processes

Utrecht, 06.06.13 External Knowledge in Organisational Innovation | ECIS 2013Paul Kruse

Slide 5

- Customers contribute to the concept, design, testing or validation of new products and services (Gruner & Homburg 2000)

- Lead users provide more accurate data on future needs of customers (von Hippel 1986)

- Companies benefit from integrating external sources in the innovation process (Chesbrough 2003)

- IT allows broader integration of external sources of innovation (Gassmann 2006)

- OI positively influences creation of products and services (Enkel et al. 2005)

Background

Open Innovation

idea generation

research and development

prototyping manufac-turing

marketing, sales diffusion

(cf. Xu et al. 2010, p. 581)

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

Methodology

Utrecht, 06.06.13 External Knowledge in Organisational Innovation | ECIS 2013 Paul Kruse

Slide 6

Approach- Literature review (Webster & Watson 2002)

Planning- How do companies currently integrate customer

knowledge through OI projects?

- How can best practices for integration concepts and strategies be systematised?

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

Methodology

Utrecht, 06.06.13 External Knowledge in Organisational Innovation | ECIS 2013Paul Kruse

Slide 7

Database

string

“open innovation”

“open innovation” AND “best practice”

“open innovation” and title:case

“open innovation project”

ACM Digital Library 212 7 0 4

Emeral Group 476 59 0 3

ScienceDirect 941 6 52 13

Wiley Online Library 757 154 18 11

sum 2386 226 70 31

Search strategy- Population

- Resources

- Inclusion/exclusion criteria

• papers written in English language

• describe at least one OI case example or OI project (RQ1)

• provide a systematisation/classification for approaches (RQ2)

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

Results

Utrecht, 06.06.13 External Knowledge in Organisational Innovation | ECIS 2013Paul Kruse

Slide 8

Example: research & development

Conclusions

- purpose: customers are invited to participate in the conceptual design of new products

- output: sketches, designs, concepts

Company Year Name Description Source

Peugeot 2000 Peugeot Concours Design

Design competition for cars

Wei & Wei (2011)

Swarovski 2002 Crystal Tattoo Design

Design competition for jewellery

Füller (2006)

Audi 2006 Virtual Lab Design community for an infotainment system

Füller, Bartl, Ernst, & Mühlbacher (2006)

Swarovski 2008 Enlightened Design competition for jewellery

Füller, Hutter, & Faullant (2011)

Spar 2009 Spar Bag-Design Contest

Design contest for shopping bags

Bullinger et al. (2010)

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

Best practices

Utrecht, 06.06.13 External Knowledge in Organisational Innovation | ECIS 2013Paul Kruse

Slide 9

• objective-centred

• marketing-focused

• hybrid

Results

Basic strategies

idea generation

research and development

prototyping manufac-turing

marketing, sales diffusion

• idea contests

• ideation

• …

• R&D challenges

• problem solving

• co-design

• …

• co-creation

• co-testing

• …

• participatory marketing

• …

2

1

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

Results

Utrecht, 06.06.13 External Knowledge in Organisational Innovation | ECIS 2013Paul Kruse

Slide 10

(own representation based on Xu et al., 2010, Bullinger et al. 2010)

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

Discussion

Utrecht, 06.06.13 External Knowledge in Organisational Innovation | ECIS 2013Paul Kruse

Slide 11

There is a multitude of best practices.- now: allocated within the process of innovation

There are different strategic approaches to OI projects.

- main focus: marketing

- other perspectives: objective and hybrid

- mostly pilot projects

- not every approach covers the full path towards innovation

The results are just a starting point for an integration concept.

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

Summary & Outlook

Utrecht, 06.06.13 External Knowledge in Organisational Innovation | ECIS 2013Paul Kruse

Slide 12

- implications for practice- categories to distinguish between OI approaches and their

targeted outcome

- best practice collection for blue print development

- differentiation of strategic facets

- (opportunities through social software)

- implications for research- starting point for quantitative research

- integration of other sources of external knowledge (?)

- future research:

• measure degree of innovation

• measure impact on innovativeness & competitiveness

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

Thank you for your attention.

Questions?

Discussion

Paul Kruse

Chair of Business and Information Systems, esp. Information Management

Technische Universität Dresden

Fon: +49 351 463 33098

Mail: paul.kruse@tu-dresden.de

twitter: @hoellenpaul (for slides)Utrecht, 06.06.13 External Knowledge in Organisational Innovation | ECIS 2013

Paul KruseSlide 13

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

Sources

Utrecht, 06.06.13 External Knowledge in Organisational Innovation | ECIS 2013Paul Kruse

Slide 14

Belkahla, W. and Triki, A. 2011. Customer knowledge enabled innovation capability: proposing a measurement scale. Journal of Knowledge Management. 15, 4, 648–674.

Bullinger, A.C., Neyer, A.-K., Rass, M. and Moeslein, K.M. 2010. Community-Based Innovation Contests: Where Competition Meets Cooperation. Creativity and Innovation Management. 19, 3, 290–303.

Chesbrough, H.W. 2003. Open innovation: the new imperative for creating and profiting from technology, Harvard Business Press, Boston.

Disselkamp, M. 2005. Innovationsmanagement: Instrumente und Methoden zur Umsetzung im Unternehmen, Gabler Verlag, Wiesbaden.

Fichter, K. 2009. Innovation communities: the role of networks of promotors in Open Innovation. R&D Management. 39, 4, 357–371.

Füller, J. 2006. Why consumers engage in virtual new product developments initiated by producers. Advances in Consumer Research. 33, 1, 639–646.

Füller, J., Bartl, M., Ernst, H. and Mühlbacher, H. 2006. Community based innovation: How to integrate members of virtual communities into new product development. Electronic Commerce Research. 6, 1, 57–73.

Füller, J., Hutter, K. and Faullant, R. 2011. Why co-creation experience matters? Creative experience and its impact on the quantity and quality of creative contributions. R&D Management. 41, 3, 259–273.

Gassmann, O. and Enkel, E. 2004. Towards a theory of open innovation: three core process archetypes. Proceedings of the R&D Management Conference, 1–18.

Gruner, K.E. and Homburg, C. 2000. Does Customer Interaction Enhance New Product Success? Journal of Business Research. 49, 1, 1–14.

Kang, K.H. and Kang, J. 2009. How Do Firms Source External Knowledge for Innovation? Analyzing Effects of Different Knowledge Sourcing Methods. International Journal of Innovation Management. 13, 1, 1–17.

Kruse, P. 2012. Managing External Knowledge in Open Innovation Processes – A Systematic Review of Research. Proceedings of the 13th European Conference on Knowledge Management, 592–601.

Kruse, P. and Geißler, P. 2012. Benefiting from External Knowledge in Open Innovation Processes. International Journal of Knowledge and Systems Science. 4, 3, 16–27.

Pleschak, F. and Sabisch, H. 1996. Innovationsmanagement, Schäffer-Poeschel, Stuttgart.

von Hippel, E. 1986. Lead Users: A Source of Novel Product Concepts. Management Science. 32, 7, 791–805.

Webster, J. and Watson, R.T. 2002. Analyzing the past to prepare for the future: Writing a literature review. MIS Quarterly. 26, 2, xiii–xxiii.

Wei, W. and Wei, F. 2011. The Impact of Product Complexity and Heterogeneity on Online Open Innovation Practices. Journal of System and Management Sciences. 1, 2, 105–115.

Xu, J., Houssin, R., Caillaud, E. and Gardoni, M. 2010. Macro process of knowledge management for continuous innovation. Journal of Knowledge Management. 14, 4 (2010), 573–591.